India, China economies to grow

While global economic growth is expected to continue at a slow pace, the economies of Southeast Asian countries, China and India still offer some encouraging signs, according to an update of the OECD Economic Outlook for Southeast Asia, China and India 2016.

Workers pack star aniseed at the factory of Lạng Sơn Agriculture Products Processing and Export Company in northern Lạng Sơn Province. Thousands of its products are exported to India, the UK, Malaysia and China yearly – VNA/VNS Photo

The update, which was released by the Organisation for Economic Co‑operation and Development (OECD) yesterday in Hà Nội, suggested that real economic activity in Southeast Asia is projected to grow at an average rate of 4.9 per cent in 2016 and 5.3 per cent in 2017.

India’s economy is expected to grow at 7.4 per cent and China’s growth is projected at 6.5 per cent in 2016.

The report says that recent external shocks that have affected economic activity in the region include the significant drop in commodity prices, China’s economic slowdown and recent financial volatility in emerging markets. Moreover, climate issues caused by El Nino-related weather conditions, such as droughts and floods, are affecting agricultural production in the region.

While growth in other countries like Indonesia, Malaysia, Thailand, and other ASEAN countries are expected to be either high or fairly stable, Viet Nam might experience a slight slow down in its growth outlook, especially when the country is exposed to risks caused by low agricultural commodity prices and drought.

In this context, the establishment of the ASEAN Economic Community in 2015 marks an important milestone that promises significant changes to the landscape of regional integration.

The recently signed Trans-Pacific Partnership (TPP), which includes four ASEAN members and the Regional Comprehensive Economic Partnership, which is still under negotiation and will cover the ASEAN+6 countries, offer opportunities to improve regional trade../.